Probably every second business has come across working with unregistered employees or employees on the basis of a civil law contract. At the same time, the majority knows that heavy fines are hidden behind this form of work. You need to know and understand that the fine does not come automatically, but is a consequence of work, inspections, audits or other forms of control of state bodies.
Let’s figure out how the State Service of Ukraine on Labor conducts checks for the fact of unregistered workers.
The classic way to identify such workers is to conduct field checks. In addition, competitors or former employees, in order to harm the former employer, write complaints and statements to the authority, revealing all the nuances and “schemes” of circumvention of labor relations.
Let’s also analyze how to another can define an unregistered worker. For example, Gostrud can take information from the statements of the Tax Service and the Pension Fund. In fact, any reliable information that is supported by evidence (documents) for the use of undeclared labor relations may become a prerequisite for conducting an audit. So, in the reports of the tax office, you can see the turnover of a legal entity or an individual entrepreneur. And if the main activity is the production of something, the turnover exceeds several million, and there are only two or three employees, then the suspicions of the State Labor Service will definitely fall on your business, which may cause a check.
Also the situation with cash registers can be cited as an example.We simulate the situation that an entrepreneur has 4 registration registrars for settlement transactions. But there is only one employee. Such a discrepancy is suspicious to say the least.
The classic situation for reviewing and applying penalties is when most of the staff have been working under a civil contract for an extended period. Or, in general, civil contracts are perpetual.
And of course, the final touch is drawing up how many people are employed and how many people actually stay in the workplace during the day.
As for the sanctions, it is important to note that they are constantly growing, since they are tied to the minimum wage. So, for one unregistered employee, the employer, by decision of the State Labor Department, must pay 10 minimum wages to the budget, which is 60,000 UAH. For a repeated violation, the fine is increased by 3 times and amounts to 180,000 hryvnia. Therefore, before deciding to work under a civil law contract, you need to think over and clarify everything.
If you want to minimize personnel risks for your business, then contact Prikhodko & Partners Law Firm. We know not only how to pass the test, but also how to avoid it, which can serve as a certain guarantee for you.